36 Strategies

Re: The 36 Strategies

Postby helios » Thu Jun 19, 2008 12:13 pm

Strategy 9 - Observing the Fire from the Other Side of the River; Ge An Guan Huo;
隔岸观火;

- internal struggles, company's intrinsic disorder made public;
- wait-n-see till the company's situation become worse, b4 attacking;
- displeasures, arguments in company;
- company's strength (stocks) are weakened;
- once the news, "noises" quieten down, seize e opportunity/ buildups, act and reap the benefits that comes in naturally & smoothly

Examples:

1. Squabbles within family businesses

2. Exploiting conflicts, tensions in international business to form win contracts by cashing on the vacuum left by the fighting "parties"

3. Staying out of uncertain situations/ outcomes/ dilemma; Minority shareholders should refrain from taking sides and adopt advices from bankers, 3rd parties; Remain at a distance to watch before deciding on whether to sell-out.
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Re: The 36 Strategies

Postby helios » Thu Jun 19, 2008 2:24 pm

Strategy 10 - A Dagger Sheathed in a Smile ; Xiao Li Cang Dao (笑里藏刀)

= trustful, it emphasises on the words;
= behind one's back, possibly an ambush;
= what appears to be meek/ weak / soft on the outside may be strong/ hard/ determined on the inside

Examples:

1. Sales strategies - skillful salesmen

2. Marketing & distribution & competition strategies - particularly, Japanese business strategies, harboring ambitious plan to flood the world markets with their brands; the Japanese companies like to keep a low profile [non-threat] first due to their strict disciplinary culture. Once the general perception is formed, the Japanese companies will displace their rivals.
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Re: The 36 Strategies

Postby helios » Fri Jun 20, 2008 10:58 am

Strategy 11 - The Plum dies in place of the Peach Li Dai Tao Jiang (李代桃僵)

= losses are inevitable, one should be willing to make sacrifices in a battle, to reap benefits or gain victory

Examples:

1. Prioritize the use of limited resources

2. Focus on the right markets - literally in stock picks etc.
2.1. Three types of market places:
- developed market = high-end;
- developing market = mid-end;
- less developed market = low-end;

3. Sacrifice the little things to accomplish the big plan - used in business arena and negotiation of contracts.
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Re: The 36 Strategies

Postby helios » Tue Jun 24, 2008 9:22 pm

Strategy 12 - Stealing a goat along the way 顺手牵羊 (shùn shǒu qiān yáng)

= if one sees a small hole on the enemy's side, use it to one's advantage;

Examples:

1. Seizing every business opportunity to venture into untapped market;

2. Growing a business by attracting talents = quote by Robert Kuok: if there are smarter people - stronger - better horses running - then why aren't you putting some of your money on them?;

3. Instead of taking on more than one can chew, one should consider going after smaller opportunities and proposition, e.g. one can expand steadily by acquiring smaller companies which provide the synergy. The risks are lower and the certainty of success higher than over-diversify;

4. Opportunities can be found in a crisis
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Re: The 36 Strategies

Postby helios » Thu Jun 26, 2008 1:50 pm

Strategy 13 - Hitting the Grass to Startle the Snake (打草惊蛇 Dă Căo Jīng Shé)


= an attempt to clarify deviations, suspicious points (& circumstances) before making the next move;

= repeatedly probe & investigate the suspicions to discover the undeveloped plot behind the scene;

Examples:

1. Forcing actions in the open, at times necessary, to "provoke" targeted audience/ competitors into actions. eg before acquiring a controlling stake, test the market to see if there are any stoppers;

2. The downside risks:

2.1. Beware of boomerang effect; the snake may create other problems.

2.2. Beware of unintended effect: one has to understand the sensitivity of the target; if the target does not respond as anticipated, the appropriate measures may not be successfully executed.
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Re: The 36 Strategies

Postby helios » Mon Jun 30, 2008 9:12 am

Strategy 14 - Borrowing a Corpse to Resurrect a Soul Jie Shi Huan Hun (借尸还魂)

= a useful person (thing/ situation) may be more difficult to employ or take advantage of;

= a less useful person (or dead thing/ situation - superficially) may be employed to unleash its full potential;

= a child that is weak & ignorant will need the assistance of a teacher to become strong. This strategy is used in a desperate situation and facing danger; a smart person grasps any opportunity and persuades others to help him survive.


Examples:

1. Operating under the umbrella of others, deployed in marketing strategies to tap into others distribution network;

2. Can't grow by investing in overseas;

3. Extending product life cycles - a product will face 4-stages growth cycle, ie. introduction, growth, maturity, decline, a marketer will attempt to extend the life cycle whenever possible by product improvement, product differentiation or creating blue oceans;

4. Sell-outs, Mergers and Acquisitions - in pharmaceutical industry, there is a trend towards mergers as a means of consolidating and minimising competition, to achieve economies of scale in R&D, purchasing, manufacturing & marketing.
Last edited by helios on Tue Jul 01, 2008 1:42 pm, edited 1 time in total.
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Re: The 36 Strategies

Postby helios » Mon Jun 30, 2008 10:28 am

Strategy 15 - Luring a Tiger from its Lair in the Mountains 调虎离山(Diào hŭ lí shān)

= trap the enemy when the natural elements are to his disadvantage;

= create false impressions to lure/ tempt the enemy out of the mountains (comfort zone) & destroy him

Examples:

1. Choosing the site of negotiation (lure the enemy out of his home ground);

2. Luring important foreign investments by providing supporting facilities;
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Re: The 36 Strategies

Postby helios » Tue Jul 01, 2008 1:53 pm

Strategy 16 - Releasing the Enemy to Recapture Him Yu Qin Gu Zong (欲擒故纵)

= do not destroy the enemy as there are good reasons to keep him alive; let him escape & tire himself out;

= while pursuing the escaped enemy, he will be tired, & lose the fighting spirits;

= without any bloodshed, it's then the best time to capture him.

= once the enemy is psychologically defeated, & believes that he's unable to put up a fight, the battle will be easily won.

Examples:

1. Exhaust the resources of the weaker competitors thro' open market competition;

2. Use varied strategies;
2.1. Do not repeat the tactics that won you a victory, but vary them according to the circumstances;

3. To win the entire organisation, first win the heart of the leader. In war, sheer physical dominance does not ensure victory, as it's more important to win total surrender & loyalty.
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Re: The 36 Strategies

Postby helios » Tue Jul 01, 2008 2:03 pm

Strategy 17 - Tossing out a Brick to get a Jade Pao Zhuan Yin Yu (抛砖引玉)

= use a decoy to entice the enemy

= tempt him to fall into the trap

Examples:

1. Use of baits in business - to lure big spenders, e.g. casino operators.
1.1. Offer the enemy a bait to lure him, when he's in disorder, strike him.

2. Investment incentives, conducive investment climate to attract foreign investments.

3. Auctions/ charity gala functions to raise money.
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Re: The 36 Strategies

Postby helios » Wed Jul 02, 2008 8:50 am

Strategy 18 - Disband the bandits by capturing their Chief Qin Zei Qin Wang (擒賊擒王)

- If the enemy's base is destroyed in an attack and its leader is captured, the whole organisation will break do'wn;


Examples:

1. Corporate head hunting, departure of key executives in a company;

2. Getting to the root of the problem, arresting it with an effective solution
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